Thursday 23 February 2017

Property returns hold strong in 2015

Peter Flanagan

Peter Flanagan

JLL head of research Hannah Dwyer
JLL head of research Hannah Dwyer

Overall returns on commercial property remained strong between April and June, according to a report from JLL.

The JLL Irish Property Index saw overall returns remain steady during the second quarter of the year, at 5.2pc. Overall returns in the last 12 months total 32.8pc, the firm said. After positive growth for the last 15 consecutive quarters, the Overall Returns Index is now only 7.8pc below levels recorded at the peak of the market in the final quarter of 2007.

Capital values increased by 3.6pc in the quarter and 24.2pc in the year. This was driven by growth across all three sectors, with Industrial recording the strongest increase in the quarter, followed by offices and retail. Overall Income decreased for the third consecutive quarter, falling by 0.4pc in Q2. The decline in rental income was due to a vacancy and a new letting with a rent free period in the portfolio.

JLL Ireland head of research Hannah Dwyer commented: "It is interesting to note the impact of income in protecting returns from property. While the Capital Value Index is still 51.1pc below peak, the Overall Return Index, which includes income return, is now just 7.8pc below peak."

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